Buydown options focus on manufactured homes and the HomeReady program
A&D Mortgage, a non-qualified mortgage lender, has expanded its lending programs with new temporary buydown options for Fannie Mae’s Manufactured Homes and HomeReady programs.
The specialized lender said the move is “designed to make homeownership more accessible and affordable for a wider range of borrowers, including first-time homebuyers and those seeking manufactured housing solutions.”
Temporary buydowns are a financial tool that reduces the interest rate on a mortgage for a set period – typically the first few years of the loan. This translates to significantly lower monthly payments for the borrower, easing the financial strain often associated with the early stages of homeownership.
A&D Mortgage has introduced two temporary buydown options designed to boost affordability:
- 3-2-1 Buydown: This option offers a 3% interest rate reduction in the first year, 2% in the second year, and 1% in the third year. After the third year, the borrower’s interest rate reverts to the original fixed rate for the remaining loan term.
- 2-1 Buydown: This option provides a 2% rate reduction in the first year and 1% in the second year. After the second year, the interest rate returns to the original fixed rate.
A&D said these new options are especially beneficial for Fannie Mae HomeReady program participants, aimed at low- to moderate-income borrowers. Additionally, individuals seeking to purchase Fannie Mae manufactured homes can now benefit from reduced initial payments.
Read next: Is this the saving grace amid rising mortgage rates?
“We are excited to offer these new temporary buydown options, which underscore our dedication to making homeownership a reality for more families,” said Max Slyusarchuk (pictured), CEO of A&D Mortgage. “By expanding our portfolio to include these options, we are not only supporting the American dream of homeownership but also addressing the need for affordable housing solutions in today’s market.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
